: Carvana’s stock rallies as company boosts outlook, cheers ‘lasting business improvements’

Carvana Co.’s stock CVNA was rising more than 8% in Wednesday’s premarket trading after the used-car retailer revised its outlook. Carvana now expects third-quarter adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of more than $75 million, whereas it was previously calling for “positive” performance on the non-GAAP metric. Analysts tracked by FactSet had been anticipating $46 million. The company also now models adjusted total gross profit per unit (GPU) upwards of $5,500, while it previously told investors to expect more than $5,000. “Our strong execution is continuing to drive lasting business improvements, including significant fundamental gains in retail and wholesale GPU, that will power future results,” Chief Financial Officer Mark Jenkins said in a release, which came as the company presented at a JPMorgan automotive conference Wednesday.

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